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Re: softtailhog post# 8799

Friday, 06/10/2011 3:32:37 PM

Friday, June 10, 2011 3:32:37 PM

Post# of 13355
The time just isn't right for biofuels just yet, but, eventually, the good times will return. It takes large companies that can have a hand in all aspects of the biofuel business to be profitable. Feedstock procurement, collection, manufacturing, blending, and, finally, marketing must all be consolidated. There just isn't enough margin for different comapnies to be involved in different parts of the chain and all make a profit at what they're doing. Somewhere in the chain there will be a weak link where the price will already have been escalated to the point that no markup is possible. That is what's happening now. As CPWY grows and obtains funding, they should be able to control more parts of the chain reducing costs and increasing profits, while, at the same time, making the fuel more economical.
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